MN HF2876

Requires custodians of self-directed IRAs to register with the state unless exempt, making it unlawful for unregistered custodians to transact business in Minnesota.

Exempts custodians whose clients are only federal covered investment advisers, registered investment advisers, broker-dealers, institutional investors, accredited investors, or out-of-state preexisting clients.

Prohibits self-directed IRA custodians from employing or associating with individuals whose registrations have been suspended or revoked by state or federal securities regulators, unless the custodian had no knowledge and exercised reasonable care.

Establishes registration requirements including filing a uniform application, paying registration fees, and automatically renewing registration annually by December 31.

Makes custodians of self-directed IRAs liable to account owners for financial losses resulting from intentional or negligent actions, and requires the commissioner to adopt rules specifying required financial security amounts to protect Minnesota residents.